Importance of Information Technology in Finance

28 Nov

With strong signs that the IT industry will continue to grow across a range of industries. IT is quickly becoming a very important component which ensures businesses can run effectively and efficiently. One key growth area is the financial industry where IT opportunities will increase.

Information technology has many uses in finance. Companies nowadays  use I.T in  many different ways from  financial trading to reporting the earnings of a business.  A companyin the financial services industry in ireland uses its Information System on a  daily basis. Information technology allows  such companies in this industry  to quickly calculate” financial statistics”, as well as for the use in electronic transfers of money, but in Ireland at present  the major key area within the finanial sector is funds, A good IT system in funds is of major benefit to companies and allows them compete for new business . http://www.ehow.com/about_6397556_importance-information-technology-finance.html

Companies  typically prefer to do business with banks or  financial institutions that offer many different services that they can access through some kind of technology based device . The ability by a customer to access their information quickly and securely  through there information system allows many banks  to increase their customer base and thus showing the high importance of the I.T in Finance. 

Below are some of the 2 reasons why IT Is So important in Finance :

Function

Customers can easily transfer and complete online transaction . Instead of  people using checks which are quickly becoming outdated for example,a company with a good information technology can clear a transaction at a click of a button. A debit or credit card purchase can be very quickly compared with the customers account balance, this either then allows the  transaction or not. (http://www.ehow.com/about_6397556_importance-information-technology-finance.html). But alot of big Finance companies that are in funds area develop there Information systems for use in producing NAVs as quick and accurate as they can, good I.T systems within a company of this nature provides the company the most upto date information on market prices on stocks and also the system itself must be user friendly and accurate.

Convenience

A Person lookin after the own finance can recieve great value from  information technology in finance and with the development of IT this  has made personal finace so much easier and quicker . Banks provide data on current and savings accounts on line as well as withdrawals . A customer can download all there account transactions and if the need arises can store them in records on a home computer, companies can also nowadays do the same and nearly always have there own accounting system built into the Information system network to make things even easier for them and it also make things more accurate. (http://www.ehow.com/about_6397556_importance-information-technology-finance.html)

Social Media

The Finance Industry can use Information Technology to create benefits from the likes of the social media,  i discussed   social media and IT importance in one of my earlier blogs,  Social Media sites on the Internet provides financial institutions with useful information on their customers. By trying to get  online communities associated with their products, companies in the financial industries  not only recieve information but it can  also encourage ” brand loyalty”, it also allows finance companies to contact the” younger demographics” that will be their future customers according to this site i found during my research: http://smallbusiness.chron.com/importance-information-technology-finance-17292.html

 

One Response to “Importance of Information Technology in Finance”

  1. ghettonaruto October 11, 2016 at 11:08 pm #

    I cannot agree more! Supa!

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